Google’s millions at work: the YouTube founders are going on a hiring/acquiring spree

Chad Hurley and Steve Chen (pictured), founders of YouTube, have just received a cash infusion for their new company, AVOS.

The funding is the duo’s first institutional round, and it was led by (no surprise) Google Ventures and NEA, with participation from Madrone Capital and Chinese incubator Innovation Works. The terms of the deal were not disclosed, but we do know that AVOS will be using the money for flashy hires and strategic acquisitions.

Given that tidbit along with the team’s all-star provenance, we can say with confidence this wasn’t some small-potatoes “pity round,” but a robust injection of cash for some of the best minds in Silicon Valley.

Alex Kinnier at NEA and Gideon Yu, former YouTube CFO, Facebook CFO, and current San Francisco 49ers president, will both be joining the AVOS board. Stay tuned for more news from AVOS on the acquisitions and hiring front.

The latest product put forth by the startup is Zeen. Still a relatively stealthy project, Zeen will take consumers into the glossy, high-design world of digital magazine creation, publication, and discovery.

The AVOS team has also been working on a new version of Delicious, the beleaguered bookmarking service. The startup recently launched a Chinese version of the site, called Mei.fm.

“As their success at YouTube has clearly demonstrated, Chad and Steve have an amazing gift for connecting people to the content that matters to them,” said Google Ventures partner David Krane in a statement released this morning.

“We’re delighted to be working with the AVOS team again, and look forward to helping grow AVOS and its technology properties.”